Union Budget 2025: Targeting 100 GW Nuclear Capacity with Focus on SMRs

In a bold move to expand the nation's non-fossil fuel power capacity, Finance Minister Nirmala Sitharama announced plans in the Union Budget for FY26 to establish 100 gigawatts (GW) of nuclear power capacity by 2047, with a particular focus on developing small modular reactors (SMRs). This initiative aligns with the government’s broader energy security agenda, one of the ten priority areas in the budget, which also addresses the needs of the poor, youth, farmers, and women.

“The development of at least 100 GW of nuclear energy by 2047 is crucial for our energy transition efforts,” Sitharama stated during her budget address. She added that to foster an active partnership with the private sector, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be undertaken.

Central to this plan is the launch of a Nuclear Energy Mission for the research and development of SMRs, with an allocated outlay of ₹20,000 crore. The government aims to operationalize at least five indigenously developed SMRs by 2033, a move that industry experts believe will catalyze the development of the nuclear power sector.

Anujesh Dwivedi, Partner at Deloitte India, welcomed the announcement, noting that the proposed 100 GW

uclear capacity by 2047 signifies a decisive policy shift toward nuclear power as a sustainable alternative to fossil-fuel-based thermal generation. This initiative, he added, is in line with India’s long-term goal of achieving net-zero emissions by 2070.Suddhasatta Kundu, Director at Nangia Andersen, highlighted that the budget measures are expected to boost domestic manufacturing across several sectors including grid-scale storage, wind turbines, solar modules, and EV batteries. He further emphasized that these proposals would not only foster indigenous technology development but also create opportunities for private sector investment, thereby accelerating growth in the nuclear segment.

Ashwin Jacob, Partner and Leader (Energy, Resources & Industrial Industry) at Deloitte India, recalled that similar thrusts on nuclear power were announced in the previous year’s vote-on-account and the July 2024 budget, generating significant private sector interest. He remarked, “Today’s announcement of ₹20,000 crore for SMR R&D, along with plans to amend critical legal frameworks, is a major step toward enabling Final Investment Decisions (FIDs) in this space.”

Jacob noted that while the specifics of the proposals will require further scrutiny, the measures are expected to attract investments from both traditional heavy industries and emerging sectors like data centers, signaling a transformative shift in India’s energy landscape.

HBL